US stock benchmark opened higher on Wednesday as market sentiment shifted toward cautious optimism following President Donald Trump’s assurance to stabilize global energy market amid the escalating Middle East conflict.
At the opening bell, the Dow Jones Industrial Average rose 134.33 points or 0.28% to 48,629.08. The S&P 500 rose 15.1 points, or 0.22%, to 6,831.69, while the Nasdaq Composite rose 104.2 points, or 0.46%, to 22,620.89.
CFRA Research’s Sam Stovall cited President Trump’s pledge to direct the US Navy to provide safe passage to oil tankers in the Strait of Hormuz, a critical waterway where traffic has slowed considerably since the US-Israeli siege on Iran, sending oil prices higher, according to AFP.
“It seems as if the market is shaking off some of the uncertainty surrounding Iran,” Stovall said.
On the economic data front, a report from ADP showed private employers added 63,000 jobs in February, more than the 48,000 that analysts projected.
In the bond market, the yield on the 10-year Treasury rose to 4.07% from 4.06% late on Tuesday.
